If you’re thinking of buying a property that would mean you needing to belong to a home owners’ association, it’s a really good idea to check out the association in a bit more detail before you commit to the property. Not knowing about the current activities of the home owners’ association can leave you vulnerable to higher costs or time-consuming problems. Some important points to look into include:
- Try to find out if there are any complaints against the home owners’ association. These associations quite commonly become involved in litigation and you should be aware of these kinds of problems in advance of signing a contract.
- Ask to see the current financial details of the home owners’ association. The requirements vary but you should be able to at least have access to an annual balance sheet and to see how much money is in the reserve fund – if the complex is older, there should be a larger reserve fund available to fix up problems as they occur.
- Get opinions from member home owners if you possible – try to ask around the complex to see what the other owners feel about the way the home owners’ association is being run, and ask them if there are any potential problems as a new buyer.